Correlation Between Fidelity Focused and Fidelity Global
Can any of the company-specific risk be diversified away by investing in both Fidelity Focused and Fidelity Global at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fidelity Focused and Fidelity Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Focused High and Fidelity Global Bond, you can compare the effects of market volatilities on Fidelity Focused and Fidelity Global and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fidelity Focused with a short position of Fidelity Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Focused and Fidelity Global.
Diversification Opportunities for Fidelity Focused and Fidelity Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fidelity and Fidelity is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Focused High and Fidelity Global Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Global Bond and Fidelity Focused is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fidelity Focused High are associated (or correlated) with Fidelity Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Global Bond has no effect on the direction of Fidelity Focused i.e., Fidelity Focused and Fidelity Global go up and down completely randomly.
Pair Corralation between Fidelity Focused and Fidelity Global
Assuming the 90 days horizon Fidelity Focused is expected to generate 1.42 times less return on investment than Fidelity Global. But when comparing it to its historical volatility, Fidelity Focused High is 1.66 times less risky than Fidelity Global. It trades about 0.17 of its potential returns per unit of risk. Fidelity Global Bond is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 802.00 in Fidelity Global Bond on August 30, 2024 and sell it today you would earn a total of 7.00 from holding Fidelity Global Bond or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Focused High vs. Fidelity Global Bond
Performance |
| Timeline |
| Fidelity Focused High |
| Fidelity Global Bond |
Fidelity Focused and Fidelity Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Focused and Fidelity Global
The main advantage of trading using opposite Fidelity Focused and Fidelity Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Focused position performs unexpectedly, Fidelity Global can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fidelity Global will offset losses from the drop in Fidelity Global's long position.| Fidelity Focused vs. Prudential High Yield | Fidelity Focused vs. HUMANA INC | Fidelity Focused vs. Aquagold International | Fidelity Focused vs. Barloworld Ltd ADR |
| Fidelity Global vs. Fidelity Porate Bond | Fidelity Global vs. Fidelity Global Equity | Fidelity Global vs. Fidelity Total International | Fidelity Global vs. Fidelity Advisor Stock |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |